Direct Public Offering (DPO)

Definition:A situation in which a company sells its shares directly to the
public without the help of underwriters
.

Direct public offerings (DPOs) allow you to sell stock directly
to the public without the registration and reporting requirements
of an initial public offering. DPOs are specifically designed to
let small businesses access the public capital markets with less
cost and complexity than is involved in IPOs.

DPOs typically raise amounts of less than $1 million, but you
can raise up to $25 million with a DPO under certain circumstances.
You can also advertise and promote the sale of your own stock if
you hold a DPO, something other public companies are forbidden to
do.

DPOs' main limitation is the lack of a secondary market for
securities. That means the stock of a DPO company is illiquid,
meaning the ability of shareholders to sell shares on the open
market is limited and they may have difficulty finding buyers for
their shares in the event they want to sell. That's not necessarily
bad for you, but it can be a deterrent to investors.